Conclusion of transactions from the scope of art. 114, para. 2 of the LPOS

6 January 2022

Sofia, Bulgaria, January 6, 2022 – According to the requirements of Art. 100t of LPOS and in connection with Art. 114, para. 9 of the Law on Public Offering of Securities, “Sopharma” AD announces that today, according to a decision of the Board of Directors dated December 21, 2021, the company concluded the following transactions falling within the scope of Art. 114, para. 2 of the LPOS:

1. “Sopharma” AD as a BUYER concluded a Contract for purchase and sale of 13 (thirteen) motor vehicles, owned by “Telecomplect” AD, UIC 831643753.

A) Participation of interested parties:

Ognian Donev is an interested person under Art. 114, para. 7, item 2 and item 3 of the LPOS, as on the one hand he is an Chairman of the Board of Directors and represents the public company “Sopharma” AD, and on the other hand, directly owns over 25% of the capital of “Telecomplect” AD and is a member of the Supervisory Board of the company - counterparty to the transaction;

Simeon Donev is an interested person under Article 114, paragraph 7, item 2 and item 3 of the LPOS, as on the one hand he is a Procurator of the public company “Sopharma” AD and a related party within the meaning of §1, v.13 b. d) from the RD of the LPOS with the Chairman of the Board of Directors of “Sopharma” AD Ognian Donev, and on the other hand he is a member of the Supervisory Board of the company “Telecomplect” AD - counterparty to the transaction;

Ventsislav Stoev is an interested person under Art. 114, para. 7, item 2 and item 3 of the LPOS, as on the one hand he is a related person within the meaning of §1, item 13, b. d) from the RD of LPOS with Vice Chairman of the Board of Directors of “Sopharma” AD Vessela Stoeva, and on the other hand - directly owns over 25% in the capital of “Telecomplect” AD and is a member of the Supervisory Board of the company - counterparty to the transaction;

Deputy - Chairman of the Board of Directors of “Sopharma” AD Vessela Stoeva is an interested person under Art. 114, para. 7, item 2 and item 3 of the LPOS, as a related person within the meaning of §1, item 13 b. d) to Ventsislav Stoev who directly owns over 25% of the capital of “Telecomplect” AD and is a member of the Supervisory Board of the company - counterparty to the transaction.

B) Value of the transaction:

Pursuant to Art. 114a, para. 6 of the LPOS, the sale price of the transaction is determined at market prices, in view of which the Board of Directors has accepted as fair market price of the transaction the total amount of BGN 587,954 (five hundred eighty-seven thousand nine hundred and fifty-four levs) excluding VAT and this assessment is based on a market valuation dated November 10, 2021 for each of the motor vehicles, prepared by independent licensed appraisers - consultants "MV Group" OOD, Sofia, UIC 131453430 and submitted by the SELLER - “Telecomplect” AD.

C) Assessment of the applicability of the conditions under Art. 114, para. 1, item 1 of the LPOS:

The value of the transaction does not exceed the applicable threshold under Art. 114, para 1 of LPOS, due to which the transaction falls within the scope of art. 114, para. 2.

D) Assessment of the applicability of Art. 114 para. 6 of LPOS:

With regard to this transaction, the hypothesis of Art. 114 para. 6 of LPOS does not apply.

2. “Sopharma” AD, as a BUYER, concluded a Contract for purchase and sale of movables (Sander and Paddle with hydraulic pump Spicer 1 300), owned by “Telecomplect” AD, UIC 831643753.

A) Participation of interested parties:

Ognian Donev is an interested person under Art.114, para. 7, item 2 and item 3 of the LPOS, as on the one hand he is an Chairman of the Board of Directors and represents the public company “Sopharma” AD, and on the other hand, directly owns over 25% of the capital of “Telecomplect” AD and is a member of the Supervisory Board of the company - counterparty to the transaction;

Simeon Donev is an interested person under Art. 114, para. 7, item 2 and item 3 of the LPOS, as on the one hand he is a Procurator of the public company “Sopharma” AD and a related party within the meaning of §1, v.13 b. d) from the RD of the LPOS with the Chairman of the Board of Directors of “Sopharma” AD Ognian Donev, and on the other hand he is a member of the Supervisory Board of the company “Telecomplect” AD - counterparty to the transaction;

Deputy - Chairman of the Board of Directors of “Sopharma” AD Vessela Stoeva is an interested person under Art. 114, para.7, item 2 and item 3 of the LPOS, as a related person within the meaning of §1, item 13 b. d) to Ventsislav Stoev who directly owns over 25% of the capital of “Telecomplect” AD and is a member of the Supervisory Board of the company - counterparty to the transaction.

B) Value of the transaction:

Pursuant to Art. 114a, para. 6 of the LPOS, the sale price of the transaction is determined at market prices, in view of which the Board of Directors has accepted as fair market price of the transaction the total amount of BGN 24,225 (twenty-four thousand two hundred and twenty-five levs) without VAT, as indicated in a market valuation dated November 10, 2021 for each of the movables, prepared by independent licensed appraisers - consultants "MV Group" OOD, Sofia, UIC 131453430 and submitted by the SELLER - “Telecomplect” AD.

C) Assessment of the applicability of the conditions under Art. 114, para. 1, item 1 of the LPOS:

The value of the transaction does not exceed the applicable threshold under Art. 114, para 1 of LPOS, due to which the transaction falls within the scope of art. 114, para. 2.

D) Assessment of the applicability of Art. 114 para 6 of LPOS:

With regard to this transaction, the hypothesis of Art. 114 para 6 of LPOS does not apply.

Both transactions are in favor of both parties and were undertaken as a result of reorganization of the transport activity of “Sopharma” AD.